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Gold Prices Supported By Growing Calls For Fed Rate Cuts

Commentaries & Views

Yesterday’s close: Settled at 1327.9, up 16.8

Fundamentals: Gold ripped higher again yesterday with the trio of Dollar, stocks and Treasury yields all losing ground. The CME’s Fed Watch Tool is signaling a 96.7% probability the Fed cuts by 25 basis points this year with a 78.8% probability they cut by 50 bps. Furthermore, there is an 85.6% probability they cut 25 bp by September. Overall, this dovish rhetoric has been priced in and given Gold’s three-session run, it is due for a healthy breather. Keep a close eye on Fed Chair Powell who speaks at 8:45 am CT and Factory Orders at 9:00 am CT. But a healthy consolidation into jobs data Friday will be all we can ask for.

Technicals: Gold is bullish out above 1310.1-1313, however, look for a healthy consolidation as a buying opportunity. It is crucial for traders to capitalize on longs and be ready, willing and able to buy pullbacks to 1310-1313. Price action settled yesterday at our major three-star resistance level at 1327.7 and this is working to keep a lid on action today. Only a close back below 1300 will now signal a failure.

Bias: Neutral/Bullish

Resistance: 1327.7***, 1335.7**, 1349.8***, 1361.5***

Support: 1320.7**, 1310.1-1313***, 1300***, 1292-1295.1**, 1288.2***

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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